Today's vehicles are fortified with the latest advances in technology to create eye-popping designs, state-of-the-art auto parts, revolutionary amenities and remarkably low emissions to meet the standards. In fact, the most promising vehicles of the present time are coming into the market place with the most-advanced and environment friendly fuels. These fuels, as a fact, offer a slice of the future and they are just under your nose.
Diesel It is, by far, the oldest technology in connection with auto fuel. Nonetheless, diesel has some important features that could serve as a bridge to the future. Diesel engines are said to be at least 30 percent more thermally efficient than gasoline engines. Modern day diesel engines are designed to blend well with the vehicle body parts to deliver a quiet and efficient operation. The BLUETEC technology which was initiated jointly by the Audi, Mercedes-Benz and Volkswagen brands, is well-accepted by auto aficionados.
Biodiesel This fuel is domestic and renewable. Usually, biodiesel is derived from natural oils such as canola and soybean. Generally, the fuel is a mixture of natural oils and petroleum-based diesel fuel. It oftentimes uses two to five percent of petroleum-based diesel. Biodiesel curbs foreign oil dependence and at the same time it reduces carbon monoxide, hydrocarbons, particulates and sulfur dioxide that pose as a great hazard to the environment.
Ethanol Another renewable fuel is ethanol and this is derived from plant sources. The fuel is usually made from corn, sugar cane and saw grasses however it could be derived from other crops as well. The most common ethanol blend is the E85 which is composed of 85 percent ethanol and 15 percent gasoline. However, there are vehicles these days that are designed to run on 100 percent ethanol. According to statistics there are about two million 'flex-fuel' vehicles on the road that can run on ethanol.
Benefits of ethanol include extremely low emissions output because of its high oxygen content that make it emit no more than vapors.
Other Fuels Hydrogen, propane, methanol, and compressed natural gas are also some of the fuels that complement gasoline engines. These fuel applications are suited for some purposes that include but not limited to warehouse or closed-space operation and fleet usage.
Another technology is turbocharging. It increases thermal efficiency hence delivering more power from less displacement. Volkswagen, for one, delivers an impressive power output from its 1.4 liter engine by utilizing turbocharger and supercharger.
Fuel cell technology radiates incredible appeal. These fuels are environmentally clean having water vapor as its by-product. Audi, BMW, Daihatsu, Fiat, Ford, GM, Honda, Hyundai, Kia, Mitsubishi, Peugeot, Suzuki, Toyota and Volkswagen are some of brands that currently use fuel cell technology in their products.
Hybrids, a segment dominated by Toyota and Honda, are also hot items at the present milieu. They offer high fuel mileage, quiet operation and lower overall emissions.
About the Author
Joe Thompson is the owner of a successful auto body shop in Ferndale, California. This 38 year old is also a prolific writer, contributing automotive related articles to various publications.
Tuesday, November 27, 2007
Bio-Fuel Crops Producing Bio-Diesel by Misty
GreenEnergy Ltd, is Vietnam's first mover in the scientific cultivation of bio-fuel crops. The founder of Green Energy Mrs.Tang Thi Kim Phuong is an entrepreneur, wife and mother and has devoted the last three years of her life to the conception, incorporation and licensing of GreenEnergy Ltd; Vietnam (GEV).
A Healty and Viable Future in Vietnam
The company now boasts 22 employees, including scientists, farmers, international businessmen, industrial workers and of course family.
GreenEnergy`s corporate mission aims to bring large tracts of rural land under scientific but basic cultivation of bio-fuel feedstocks, bringing with it employment and entrepreneurial opportunities to potentially thousands of Vietnamese rural poor, while providing inputs for GreenEnergy`s core business, the refining and marketing of bio-diesel.
It is a win, win situation for everyone because not only does cultivation of this vegetable oil require only marginally arable, war damaged or barren land, this also means its activities do not compete with other food production which avoids putting upward pressure on food prices.
N.B (Vietnamese Government has identified seven million hectares as marginal, barren or war damaged land).
In addition GreenEnergy`s operations achieve a renewable and sustainable fuel source for Vietnam to continue its development with all the attendant social, economic and environmental benefits in producing clean energy.
Because of the scale and potential of the bio-diesel industry in Vietnam and indeed globally, where tens of millions of bio-fuel crops will have to be grown to substantially replace fossil fuels, a 'second green revolution' is possible, bringing with it true improvement in the lives of the rural poor and vegetable oils can play a significant role in helping to ameliorate global warming as a key aspect of climate change.
Global warming, a key aspect of climate change, now clearly recognized as a result of a concentration of greenhouse gases (GHGs) in the atmosphere - has the worst impact on the climate.
Carbon dioxide, the most common of GHGs, is emitted during the burning of fossil fuels.
The Kyoto Protocol gazetted in February 2005 requires participating countries to cut carbon emissions.
Further to this, rising crude oil prices and the need to reduce dependence on imported oil has made it necessary for net oil importers to think of alternative energy sources. The precarious situation with fossil fuel supplies coupled with the ability of bio-fuels to lessen that risk, makes it feasible for the global economy to revert its focus towards agriculture and those traditionally engaged in it, thus offering a potential boon to Vietnam's rural sector.
Full bio-diesel use would reduce net CO2 by over 78% compared to petroleum diesel and up to 16% with the use of blends comprising 20% bio-diesel.
While both fuels are almost equally efficient at converting raw energy resources into fuels, bio-diesel has a larger part that is renewable .Similarly, bio-diesel is non-toxic and environmentally friendly as it produces substantially less CO2, ensuring sustainable environmental practices.
GreenEnergy has recognized this mammoth task and has adopted a dual strategy for attaining its goals in Vietnam.
1.Public - Aggressive initiatives to "jump-start" the production side of bio-fuel feedstocks by forming a partnership with Vietnams Central Government and People's Committees as well as aid agencies to help put large tracts of marginal land under bio-fuel crop cultivation quickly.
A memorandum of understanding and support was signed by the Peoples Committee of Binh Dinh Province and Green Energy Vietnam on the 8th of December 2006 and the 500 hectare Binh Dinh Research and Training Facility for the Cultivation of Biofuel Feedstocks has been established, known as BDF- FARMER ENERGY- a working laboratory devoted to developing the bio-fuel industry for the benefit of Vietnamese rural poor.
2.Private - Includes GEV investments to retain its 'First Mover' advantage by securing its proprietary feedstocks, expanding its physical plant refinery presence and continuing to build its integrated supply-chain, complete with forward contracted suppliers and customers.
It is in this first arena, Public Initiatives, that GreenEnergy sees co-operation with aid agencies.
Some of the substantial and sustainable benefits that the cultivation of bio-fuels crops can contribute to Vietnam are:
1. Real cash growth, raising the annual income of $820 to $1,300 U.S. for thousands of marginalized rural families.
2. Private homesteading for the rural poor.
3. Stress relief and barren or war damaged land reclamation.
4. Enfranchisement of poor, rural women.
5. Retention of scarce foreign currency reserves and
6. Independence from the uncertainties of global mineral oil markets.
The People`s Committee of the Province of Binh Dinh and GreenEnergy, Vietnam, in full realization of the enormous impact this Research and Training Facility will have for all of Vietnam`s rural communities, cordially invites any and all organizations seeking positive change in the livelihood of rural Vietnamese to form an active Partnership in the development of this Research and Training Facility.
The Binh Dinh Facility wants to be a catalyst in harnessing this opportunity for all stakeholders and delivering:
. A path for the rural poor to climb out of their deprivation rather than fall further behind.
. A renewable, sustainable and viable alternative to fossil fuel for Vietnam's surging economy. and an industry that rejuvenates, rather than degrades the environment.
Introduction to the oil plant Jatropha.
The oil plant Jatrophas curcas (L) (Jatropha) or physic nut, is multipurpose and drought resistant, growing to a height range of 2 to 7 metres for the Asian species and it not only flourishes in tropical and sub-tropical climate zones but even in areas absent of water.
Because its leaves and stems are toxic to animals it is often used as a protective hedge around farm houses, gardens and fields.
It also reduces soil damage caused by erosion from wind and water and traditionally the seeds were harvested by women for medical treatments and local soap production.
In Thailand, Jatropha normally flowers twice a year, in dry and rainy seasons with seed harvesting conducted approximately 60-90 days after flowering and the oil plant has a productive life of 20 years.
Because the market is probably not yet mature enough for the plant to generate enough income solely from oil extraction, a holistic rural development approach has to be taken into account in order to exploit all potential uses of the Jatropha plant. This approach is known as the Jatropha System.
The system focuses not only on the use of the source as a fuel, but rather as an element, to activate a system combining ecologic, economic and income generating activities.
Consequently, the Jatropha System offers four main aspects of development aiming to better the livelihoods in rural areas, especially for women and farmers:
. Renewable energy- bio-diesel
. Erosion control and soil improvement
. Promotion of women and
. Income generation.
About one-third of seeds can be extracted as oil that has a similar energy value to diesel fuel. The oil is extracted by hydraulic pressure and then filtered through an intensive sleeve that can then be readily used without any complicated refinery process, directly available for small diesel engines as a substitution for diesel oil, without engine modification.
This oil can power engines, such as water pumps, tractors, hand mowers, other farm machinery and rice milling machines and by using this domestically produced oil as a substitution for imported oil, significant cash savings can be made.
GreenEnergy Ltd have already committed a considerable amount of time, money and resources to this environmentally sound an economically sustainable project in Vietnam and welcome further input from other interested parties.
It is also their belief that at an international level, stakeholders involved should perform a three pronged approach, with mutual knowledge, technology transfer, genetic development of high oil content in the seeds and exchange of Jatropha species, together with investment and trade linkage.
About the Author
For further information on this renewable energy with great potential, please contact:.......
"The second Green Revolution For further information on this renewable energy with great potential. Please visit Green Energy. "The second Green Revolution with cellulose and jatropha, can give us two agro-routes toa world without gasoline."Mukesh Ambani India's Leading Industrialist
A Healty and Viable Future in Vietnam
The company now boasts 22 employees, including scientists, farmers, international businessmen, industrial workers and of course family.
GreenEnergy`s corporate mission aims to bring large tracts of rural land under scientific but basic cultivation of bio-fuel feedstocks, bringing with it employment and entrepreneurial opportunities to potentially thousands of Vietnamese rural poor, while providing inputs for GreenEnergy`s core business, the refining and marketing of bio-diesel.
It is a win, win situation for everyone because not only does cultivation of this vegetable oil require only marginally arable, war damaged or barren land, this also means its activities do not compete with other food production which avoids putting upward pressure on food prices.
N.B (Vietnamese Government has identified seven million hectares as marginal, barren or war damaged land).
In addition GreenEnergy`s operations achieve a renewable and sustainable fuel source for Vietnam to continue its development with all the attendant social, economic and environmental benefits in producing clean energy.
Because of the scale and potential of the bio-diesel industry in Vietnam and indeed globally, where tens of millions of bio-fuel crops will have to be grown to substantially replace fossil fuels, a 'second green revolution' is possible, bringing with it true improvement in the lives of the rural poor and vegetable oils can play a significant role in helping to ameliorate global warming as a key aspect of climate change.
Global warming, a key aspect of climate change, now clearly recognized as a result of a concentration of greenhouse gases (GHGs) in the atmosphere - has the worst impact on the climate.
Carbon dioxide, the most common of GHGs, is emitted during the burning of fossil fuels.
The Kyoto Protocol gazetted in February 2005 requires participating countries to cut carbon emissions.
Further to this, rising crude oil prices and the need to reduce dependence on imported oil has made it necessary for net oil importers to think of alternative energy sources. The precarious situation with fossil fuel supplies coupled with the ability of bio-fuels to lessen that risk, makes it feasible for the global economy to revert its focus towards agriculture and those traditionally engaged in it, thus offering a potential boon to Vietnam's rural sector.
Full bio-diesel use would reduce net CO2 by over 78% compared to petroleum diesel and up to 16% with the use of blends comprising 20% bio-diesel.
While both fuels are almost equally efficient at converting raw energy resources into fuels, bio-diesel has a larger part that is renewable .Similarly, bio-diesel is non-toxic and environmentally friendly as it produces substantially less CO2, ensuring sustainable environmental practices.
GreenEnergy has recognized this mammoth task and has adopted a dual strategy for attaining its goals in Vietnam.
1.Public - Aggressive initiatives to "jump-start" the production side of bio-fuel feedstocks by forming a partnership with Vietnams Central Government and People's Committees as well as aid agencies to help put large tracts of marginal land under bio-fuel crop cultivation quickly.
A memorandum of understanding and support was signed by the Peoples Committee of Binh Dinh Province and Green Energy Vietnam on the 8th of December 2006 and the 500 hectare Binh Dinh Research and Training Facility for the Cultivation of Biofuel Feedstocks has been established, known as BDF- FARMER ENERGY- a working laboratory devoted to developing the bio-fuel industry for the benefit of Vietnamese rural poor.
2.Private - Includes GEV investments to retain its 'First Mover' advantage by securing its proprietary feedstocks, expanding its physical plant refinery presence and continuing to build its integrated supply-chain, complete with forward contracted suppliers and customers.
It is in this first arena, Public Initiatives, that GreenEnergy sees co-operation with aid agencies.
Some of the substantial and sustainable benefits that the cultivation of bio-fuels crops can contribute to Vietnam are:
1. Real cash growth, raising the annual income of $820 to $1,300 U.S. for thousands of marginalized rural families.
2. Private homesteading for the rural poor.
3. Stress relief and barren or war damaged land reclamation.
4. Enfranchisement of poor, rural women.
5. Retention of scarce foreign currency reserves and
6. Independence from the uncertainties of global mineral oil markets.
The People`s Committee of the Province of Binh Dinh and GreenEnergy, Vietnam, in full realization of the enormous impact this Research and Training Facility will have for all of Vietnam`s rural communities, cordially invites any and all organizations seeking positive change in the livelihood of rural Vietnamese to form an active Partnership in the development of this Research and Training Facility.
The Binh Dinh Facility wants to be a catalyst in harnessing this opportunity for all stakeholders and delivering:
. A path for the rural poor to climb out of their deprivation rather than fall further behind.
. A renewable, sustainable and viable alternative to fossil fuel for Vietnam's surging economy. and an industry that rejuvenates, rather than degrades the environment.
Introduction to the oil plant Jatropha.
The oil plant Jatrophas curcas (L) (Jatropha) or physic nut, is multipurpose and drought resistant, growing to a height range of 2 to 7 metres for the Asian species and it not only flourishes in tropical and sub-tropical climate zones but even in areas absent of water.
Because its leaves and stems are toxic to animals it is often used as a protective hedge around farm houses, gardens and fields.
It also reduces soil damage caused by erosion from wind and water and traditionally the seeds were harvested by women for medical treatments and local soap production.
In Thailand, Jatropha normally flowers twice a year, in dry and rainy seasons with seed harvesting conducted approximately 60-90 days after flowering and the oil plant has a productive life of 20 years.
Because the market is probably not yet mature enough for the plant to generate enough income solely from oil extraction, a holistic rural development approach has to be taken into account in order to exploit all potential uses of the Jatropha plant. This approach is known as the Jatropha System.
The system focuses not only on the use of the source as a fuel, but rather as an element, to activate a system combining ecologic, economic and income generating activities.
Consequently, the Jatropha System offers four main aspects of development aiming to better the livelihoods in rural areas, especially for women and farmers:
. Renewable energy- bio-diesel
. Erosion control and soil improvement
. Promotion of women and
. Income generation.
About one-third of seeds can be extracted as oil that has a similar energy value to diesel fuel. The oil is extracted by hydraulic pressure and then filtered through an intensive sleeve that can then be readily used without any complicated refinery process, directly available for small diesel engines as a substitution for diesel oil, without engine modification.
This oil can power engines, such as water pumps, tractors, hand mowers, other farm machinery and rice milling machines and by using this domestically produced oil as a substitution for imported oil, significant cash savings can be made.
GreenEnergy Ltd have already committed a considerable amount of time, money and resources to this environmentally sound an economically sustainable project in Vietnam and welcome further input from other interested parties.
It is also their belief that at an international level, stakeholders involved should perform a three pronged approach, with mutual knowledge, technology transfer, genetic development of high oil content in the seeds and exchange of Jatropha species, together with investment and trade linkage.
About the Author
For further information on this renewable energy with great potential, please contact:.......
"The second Green Revolution For further information on this renewable energy with great potential. Please visit Green Energy. "The second Green Revolution with cellulose and jatropha, can give us two agro-routes toa world without gasoline."Mukesh Ambani India's Leading Industrialist
Super Fuel Efficient Autos For The Carolinas by Anthony Fontanelle
The demand for fuel efficient vehicle is very strong that civic organizations are doing their best to promote the use of eco-friendly and fuel efficient vehicles. An example of this is the Plug-In Hybrid Coalition of the Carolinas which is slated to receive its first delivery of a plug-in hybrid car on the 23rd of this month.
The said plug-in hybrid vehicle is a prototype which, according to sources, has an astounding gas mileage rating of 100 miles per gallon. That figure is for city driving. The fuel efficiency of the said prototype is complemented by its environment friendliness. The car reduces emission by as much as 60 percent.
"We are thrilled to show technology exists that will significantly improve air quality, reduce greenhouse gases, and lessen our dependence on foreign oil," said Jim Poch, the Executive Director of the Plug-IN Hybrid Coalition of the Carolinas. Poch also pointed out that the use of alternative fuels will further enhance the eco-friendliness of the vehicle and its fuel efficiency as well.
Plug-in hybrid vehicles are essentially hybrid vehicles which can be recharged by plugging it into an electrical socket. This capability of plug-in hybrid vehicles is made possible by an efficient battery pack which is powerful enough to store a large amount of power. This stored power should also be complemented by advanced electric motors which will be tasked to drive the vehicle.
By simply plugging in a PHEV into a household socket, its battery pack can be recharged. For car owners who do most of their driving around a city, the capability of the advanced battery pack and the electric motor would mean that consumption of petroleum fuel will be virtually eliminated.
The Coalition is a grassroots organization composed of civic, business, and environmental leaders. The coalition's aim is to urge automakers to push forward with the development of practical plug-in hybrid vehicles for mass production. Over 50 prototypes of PHEVs have already been built since 2004. Two of these are hybrid school buses used in Raleigh and Charlotte, North Carolina. In response to the coalition's urging, both Toyota and General Motors, the largest automakers in the world predicts that PHEVs may be mass produced by 2010.
Area utilities supporting the coalition include SCE&G, Progress Energy and Duke Energy. Bob Long, the general manger of corporate planning for SCE&G, has this to say about their involvement in the initiative: "Government studies have shown our nation has enough off-peak electricity to power 84 percent of the nation's passenger and light duty truck fleet. Since the vehicles reduce emissions and lower fuel costs, we think plug-ins present a winning combination for consumers, the environment, and the utility industry."
Meanwhile, Lloyd Yates, the president and Chief Executive Officer of Progress Energy Carolinas, has this to say: "Meeting the energy needs of the future requires a balanced solution, one that includes alternative projects like these plug-in hybrids. We are excited about the coalition's work and we look forward to learning more about the promise of these vehicles."
The delivery of the coalition's first PHEV signals a new era for vehicles such as this. With this, it seems that the advent of PHEVs could not be stopped even with highly efficient brake components from Active Brakes Direct.
The sentiment of the coalition is summed up by Dana Beach, the Coastal Conservation League Director, saying: "We are excited to help showcase this technology. Anything that improves air quality and reduces greenhouse gases is urgently needed."
About the Author
Anthony Fontanelle is a 35-year-old automotive.buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.
The said plug-in hybrid vehicle is a prototype which, according to sources, has an astounding gas mileage rating of 100 miles per gallon. That figure is for city driving. The fuel efficiency of the said prototype is complemented by its environment friendliness. The car reduces emission by as much as 60 percent.
"We are thrilled to show technology exists that will significantly improve air quality, reduce greenhouse gases, and lessen our dependence on foreign oil," said Jim Poch, the Executive Director of the Plug-IN Hybrid Coalition of the Carolinas. Poch also pointed out that the use of alternative fuels will further enhance the eco-friendliness of the vehicle and its fuel efficiency as well.
Plug-in hybrid vehicles are essentially hybrid vehicles which can be recharged by plugging it into an electrical socket. This capability of plug-in hybrid vehicles is made possible by an efficient battery pack which is powerful enough to store a large amount of power. This stored power should also be complemented by advanced electric motors which will be tasked to drive the vehicle.
By simply plugging in a PHEV into a household socket, its battery pack can be recharged. For car owners who do most of their driving around a city, the capability of the advanced battery pack and the electric motor would mean that consumption of petroleum fuel will be virtually eliminated.
The Coalition is a grassroots organization composed of civic, business, and environmental leaders. The coalition's aim is to urge automakers to push forward with the development of practical plug-in hybrid vehicles for mass production. Over 50 prototypes of PHEVs have already been built since 2004. Two of these are hybrid school buses used in Raleigh and Charlotte, North Carolina. In response to the coalition's urging, both Toyota and General Motors, the largest automakers in the world predicts that PHEVs may be mass produced by 2010.
Area utilities supporting the coalition include SCE&G, Progress Energy and Duke Energy. Bob Long, the general manger of corporate planning for SCE&G, has this to say about their involvement in the initiative: "Government studies have shown our nation has enough off-peak electricity to power 84 percent of the nation's passenger and light duty truck fleet. Since the vehicles reduce emissions and lower fuel costs, we think plug-ins present a winning combination for consumers, the environment, and the utility industry."
Meanwhile, Lloyd Yates, the president and Chief Executive Officer of Progress Energy Carolinas, has this to say: "Meeting the energy needs of the future requires a balanced solution, one that includes alternative projects like these plug-in hybrids. We are excited about the coalition's work and we look forward to learning more about the promise of these vehicles."
The delivery of the coalition's first PHEV signals a new era for vehicles such as this. With this, it seems that the advent of PHEVs could not be stopped even with highly efficient brake components from Active Brakes Direct.
The sentiment of the coalition is summed up by Dana Beach, the Coastal Conservation League Director, saying: "We are excited to help showcase this technology. Anything that improves air quality and reduces greenhouse gases is urgently needed."
About the Author
Anthony Fontanelle is a 35-year-old automotive.buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.
House-buying caution fuels remortgage boom by Paul McIndoe
The proportion of UK remortgages as a percentage of loans approved over the last six months has grown significantly as cautious homeowners are turning their back on buying houses in a period of perceived financial instability.
Figures produced by Hamptons International Mortgages show that the proportion of home loans used to purchase a property has fallen 12% since March 2007 and now stands at 32.09% of total loan approvals. Conversely, the amount of remortgages approved has grown by 9% since March and now stands at almost 28% of the entire market with almost all of that increase coming in the months of August and September.
It has become apparent that the housing market is entering a period of uncertainty and managing director at Hamptons, Jonathan Cornell believes it is further evidence of people heeding global warnings of an over-priced UK residential property market. He said: “The clear disparity in the directional change of remortgage and purchase lending over the month of September offers potential evidence that supports recent reports of the housing market slowing down, as less people are willing to commit to mortgages on house purchases. “
Two other significant findings were highlighted by the recent research. Firstly, the loan-to value (LTV) of remortgages fell significantly in the space of a month; August figures showed an average LTV of almost 66% which dropped to just under 50% a month later. Secondly, many remortgaging borrowers are opting for tracker mortgages, gambling on the Bank of England rate going down over the coming months or years, leading Cornell to comment: “Remortgaging has considerably increased since August 2007, yet borrowers are now borrowing at a lower LTV, choosing variable rate over fixed rate deals. This suggests that people are still unsure about where the market is going and as a consequence are making cautious decisions.â€
Despite the caution, people are still willing to take on new borrowing in the form of remortgages, so even though they might be unsure about the future of house prices they are not so wary about their own financial future.
Remortgages are also growing in popularity as homeowners with unsecured debt are trading it off against the equity in their property, to relieve some of the pressure on the household’s monthly outgoings. Some are taking this action in conjunction with the expiration of an existing fixed rate, tracker or discounted rate mortgage; although increasing numbers are remortgaging solely as a way of clearing their unsecured debt.
About the Author
Paul McIndoe is an online, freelance journalist and keen hillwalker. He lives in Edinburgh with his two dogs.
Figures produced by Hamptons International Mortgages show that the proportion of home loans used to purchase a property has fallen 12% since March 2007 and now stands at 32.09% of total loan approvals. Conversely, the amount of remortgages approved has grown by 9% since March and now stands at almost 28% of the entire market with almost all of that increase coming in the months of August and September.
It has become apparent that the housing market is entering a period of uncertainty and managing director at Hamptons, Jonathan Cornell believes it is further evidence of people heeding global warnings of an over-priced UK residential property market. He said: “The clear disparity in the directional change of remortgage and purchase lending over the month of September offers potential evidence that supports recent reports of the housing market slowing down, as less people are willing to commit to mortgages on house purchases. “
Two other significant findings were highlighted by the recent research. Firstly, the loan-to value (LTV) of remortgages fell significantly in the space of a month; August figures showed an average LTV of almost 66% which dropped to just under 50% a month later. Secondly, many remortgaging borrowers are opting for tracker mortgages, gambling on the Bank of England rate going down over the coming months or years, leading Cornell to comment: “Remortgaging has considerably increased since August 2007, yet borrowers are now borrowing at a lower LTV, choosing variable rate over fixed rate deals. This suggests that people are still unsure about where the market is going and as a consequence are making cautious decisions.â€
Despite the caution, people are still willing to take on new borrowing in the form of remortgages, so even though they might be unsure about the future of house prices they are not so wary about their own financial future.
Remortgages are also growing in popularity as homeowners with unsecured debt are trading it off against the equity in their property, to relieve some of the pressure on the household’s monthly outgoings. Some are taking this action in conjunction with the expiration of an existing fixed rate, tracker or discounted rate mortgage; although increasing numbers are remortgaging solely as a way of clearing their unsecured debt.
About the Author
Paul McIndoe is an online, freelance journalist and keen hillwalker. He lives in Edinburgh with his two dogs.
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